Padilla Speer Beardsley: Agency Business Report 2010

The agency's 2009 financial performance didn't live up to CEO Lynn Casey's cautious optimism for double-digit growth, which she had expressed in 2008.

Principal: Lynn Casey, CEO and chairwoman
Ownership: Independent
Offices: Minneapolis and New York

Staff
Headcount is 93, down from 102 in 2008.

Practice areas
The most growth occurred in agribusiness and healthcare. Consumer products and technology showed the least growth. Other practices include corporate communications and new interactive group Padilla Gorilla.

Accounts
Wins include BASF Crop Protection and Mayo Clinic Health Manager. PSB lost Beam Brands due to management changes.

Financial performance
Revenue was $15,195,259, down 5%  from 2008. Both top- and bottom-line reports were down.

Analysis
The agency's 2009 financial performance didn't live up to CEO Lynn Casey's cautious optimism for double-digit growth, which she had expressed in 2008.

Padilla's decline was due in part to a focus on organic growth, which accounted for 75% of its annual revenue.

Referring to consumer and tech pullback, she says, "We probably waited too long for our current clients to turn a corner in their business and, therefore, in our budgets before we realized we needed to double our efforts on the new-business front."

Regardless, Casey says the agency will continue to focus on consumer, especially the food and beverage category.

With the BASF win, the firm also expanded its agribusiness practice, an area that was down 25% last year.

The firm showed an integrated approach with the Padilla Gorilla launch, and doubled revenue, to 2%, from its research offering.

With current client forecasts, Casey says she expects 2010 revenue to look more like it did in 2008. "We want to grow steadily as we always have," she explains.

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